Tax Structure
TWO TAX STRUCTURES
Idaho and Washington take different approaches to corporate and personal taxes. In Idaho, low corporate and personal income tax rates provide revenues to operate the state. Washington bases its business and occupation tax on gross revenues and imposes no personal income tax.
Other benefits produce additional balance sheet flexibility. Investment tax credits, community block and rural business development grants, tax increment financing, and community empowerment zone credits are among them.
STATE TAX HIGHLIGHTS
| Tax Category |
Washington |
Idaho |
California |
| C Corporation income tax |
None |
7.6% |
8.84% |
| S Corporation income tax |
None |
Federal law |
1.5% |
| Limited Liability income tax |
None |
Federal law |
$979-$8814 |
| Partnership income tax |
None |
Federal law |
Federal law |
| Individual income tax |
None |
7.8%>$22,074 S
7.8%>$44,148 M |
9.3%>$35,792 S
9.3%>71,584 M |
| Motor Vehicle licenses |
$30 |
$24-$28 |
$27 + 2% of value |
| Sales and use tax |
7.6%-8.5% |
6.0% |
8.25% |
| Occupational tax |
0.484% |
None |
None |
| Real and personal property tax |
$9.27-$18.27 per $1,000 value |
$9.49-$27.97 per $1,000 value
(1st $50,000 exempt) |
$9.49-$27.97 per $1,000 value |
| Realty transfer tax |
1.28% |
Not imposed |
$0.55/$500 |
| Unemployment tax |
0.97%-5.4% up to $30,500 |
0.2%-5.4% up to $24,500 |
0.7%-5.4% up to $7,000 |
Sources: Idaho Department of Commerce & Labor; Washington Department of Revenue
Photo credits—University of Idaho Research Park. |
